Over the last few months, Jet Airways has been in the news for all the wrong reasons. It has been forced to return aircraft to leasing companies as it has not been able to pay lease rentals, cancel flights, and see over 150 of its pilots leave the airline.
So serious is the airline’s financial state that, on February 14, its board approved a a bank-led Provisional Resolution Plan for converting the lenders’ debt into equity shares, as a result of which the lenders will become the largest shareholders in the company.
The conversion of lenders’ debt to the company’s equity shares will be made at a consideration of Rs. 1.
